The Reserve Bank of India (RBI) sold about $7 billion last Friday to defend the rupee, Bloomberg reported, citing people familiar with the matter.
The rupee traded at 95.6 per dollar on Thursday, about 1.4% from its record low. The currency has fallen 5.87% against the dollar in 2026.
Inside the Largest RBI Rupee Intervention in Months
According to the report, the latest move ranked among the central bank’s largest direct interventions in months. The central bank intervened in both onshore and offshore markets. This came as currency was sliding close to its May record low of 96.96 per dollar.
Two senior bankers put Friday’s dollar sales at $8 billion to $9 billion, Reuters reported. Follow-up sales on Monday and Tuesday then lifted the rupee past 96 per dollar.
Meanwhile, India’s foreign exchange reserves stood at $676.2 billion as of July 17, up more than $9 billion in three weeks.
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Friday’s Move Follows 3 Months of Heavy Dollar Sales
The latest intervention extends a months-long pattern. RBI data shows the central bank sold a net $9.76 billion in March, $8.94 billion in April, and $6.1 billion in May.
In May alone, the RBI purchased $22.2 billion and sold $28.3 billion, Reuters reported. However, the RBI has not relied solely on dollar sales.
It paired interventions with policy measures to attract inflows. Those steps appear to be working. Foreign funds bought $1.3 billion of Indian equities in the week through July 9, the biggest such purchase since June 2025. Goldman Sachs also expects the RBI’s measures and softer oil prices to support the rupee.
Whether the defense holds may depend on oil prices and the pace of foreign inflows. For now, rising reserves suggest the RBI has room to keep selling dollars.
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